Inflation in the Eurozone rose to an all-time high in March.
Inflation rose to 7.5 percent from 5.9 percent on an annual basis in March. The expectation was 6.7 percent. The CPI exceeded the estimates of 1.8 percent with 2.5 percent on a monthly basis.
Core inflation also rose from 2.7 percent to 3 percent.
The rise in inflation causes interest rate hike expectations from the European Central Bank to be delayed.
ECB announced at this month’s meeting that its asset purchase program would shrink faster. The bank is expected to end its long-standing negative interest rate policy by increasing interest rates once or twice by the end of the year.
ECB Vice President Luis de Guindos predicted that inflation would peak in 2-3 months. ECB Chief Economist Philip Lane, on the other hand, said in a statement yesterday that the authorities should be prepared for regulations in both directions in monetary policy.